as on 1st January as on 31st March 026 14.00 Debtors 30,000 35.000 Stock 40.000 46,000 Furniture 3.000 3.000 73,000 84,000 Less : Creditors (12.000) ( (10.000) 61,000 74.000 Profit, equal to net increase 13.000 74.000 74.000 Illustration 3 Fimm X & Co. consists of partners A and B sharing Profits and Losses in the ratio of 3:2. The firm Y & Co. consists of partners B and C sharing Profits and Losses in the ratio of 5: 3. On 31 March, 2012 it was decided to amalgamate both the firms and form a new firm XY & Co., wherein A, B and C would be partners sharing Profits and Losses in the ratio of 4:5:1 Balance Sheet as at 31.3.2012 Liabilities X&Co. Y & Co. Assets X&Co. Y& Co.